CP 1109, LLC VS. CONTINENTAL MOTORS, INC. (L-4837-13, CAMDEN COUNTY AND STATEWIDE)

CourtNew Jersey Superior Court Appellate Division
DecidedAugust 29, 2018
DocketA-0870-16T4
StatusUnpublished

This text of CP 1109, LLC VS. CONTINENTAL MOTORS, INC. (L-4837-13, CAMDEN COUNTY AND STATEWIDE) (CP 1109, LLC VS. CONTINENTAL MOTORS, INC. (L-4837-13, CAMDEN COUNTY AND STATEWIDE)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CP 1109, LLC VS. CONTINENTAL MOTORS, INC. (L-4837-13, CAMDEN COUNTY AND STATEWIDE), (N.J. Ct. App. 2018).

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited. R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION DOCKET NO. A-0870-16T4

CP# 1109, LLC, a Delaware LLC,

Plaintiff-Appellant,

and

MARTIN E. O'BOYLE,

Plaintiff,

v.

CONTINENTAL MOTORS, INC., a Delaware Corporation, and MATTITUCK SERVICES, INC., f/k/a TELEDYNE MATTITUCK SERVICES, INC., a Delaware Corporation,

Defendants-Respondents.

Argued May 10, 2018 - Decided August 29, 2018

Before Judges Simonelli, Rothstadt and Gooden Brown.

On appeal from Superior Court of New Jersey, Law Division, Camden County, Docket No. L-4837-13.

Jonathan R. O'Boyle argued the cause for appellant (The O'Boyle Law Firm, PC, attorneys; Jonathan R. O'Boyle, of counsel and on the briefs).

Frank J. Vitolo argued the cause for respondents (Riker Danzig Scherer Hyland & Perretti, LLP, attorneys; Frank J. Vitolo, of counsel and on the brief; Thomas M. Kenny, on the brief).

PER CURIAM

In 2015, plaintiff CP#1109, LLC filed an amended complaint

against defendants Continental Motors, Inc. (CMI) and Mattituck

Services, Inc. (Mattituck), alleging that CMI's defective engine

cylinders caused damage to plaintiff's single engine airplane

after they were installed by Mattituck, CMI's authorized service

center. Plaintiff asserted causes of action for breach of express

warranty, breach of contract, and violations of the New Jersey

Consumer Fraud Act (CFA), N.J.S.A. 56:8-1 to -20, and the Magnuson-

Moss Warranty Federal Trade Commission Improvement Act (MMWA), 15

U.S.C. §§ 2301 to 2312.1

After a five-day trial conducted from May 5 to 12, 2016, the

jury returned a verdict in favor of defendants. Plaintiff now

appeals from the conforming final judgment entered on July 13,

2016, arguing reversible trial errors consisting of the admission

1 Plaintiff's amended complaint replaced its original nine-count complaint filed in 2013 and sounding in products liability. The trial court granted plaintiff's motion to file an amended complaint after granting defendants' motions for summary judgment on plaintiff's products liability claims.

2 A-0870-16T4 of a spreadsheet as a business record, confusing jury instructions,

an erroneous jury verdict form, the omission of an adverse

inference instruction, and cumulative error. Plaintiff also

argues error in the imposition of taxed costs following the

verdict. We have considered these arguments in light of the record

and applicable legal principles. We reject each of the points

raised on appeal and affirm.

We recount the facts relevant to this appeal. CMI is a

manufacturer of reciprocating engines for general aviation

aircrafts. The engine at the heart of this case was manufactured

by CMI and ultimately installed in the airplane sold to plaintiff

in 2008. Plaintiff purchased the airplane used. In November

2010, plaintiff contacted CMI's customer service team to report a

cracked crankcase in the engine in need of repair. CMI recommended

sending the damaged engine to Mattituck, CMI's distributor and

repair facility located in New York. Plaintiff arranged for

Albatross Air, a company in West Virginia where the airplane was

located at the time, to remove the engine from the airplane and

ship it to Mattituck. Once Mattituck received the engine, they

repaired the crankcase and replaced two of the engine's cylinders

with new cylinders manufactured by CMI and covered by CMI's

cylinder warranty. The repaired engine was then shipped back to

3 A-0870-16T4 Albatross Air, which reinstalled the engine and returned the

airplane to plaintiff.

Subsequently, on September 27, 2012, CMI was notified that

an aircraft in Nevada was grounded after the engine, which was

manufactured by CMI, overheated. A subsequent investigation of

the coolant in the engine revealed that the cylinders were

contaminated with casting sand from the factory during the

manufacturing process. CMI immediately notified the Federal

Aviation Administration (FAA) and instituted remedial measures

that were later approved by the FAA,2 including reviewing

manufacturing records to determine what cylinders were potentially

affected in order to conduct inspections. As a result of that

review, CMI identified fifty-five potentially affected cylinders,

including plaintiff's. Some of the fifty-five cylinders were in

CMI's inventory, but some, like plaintiff's, had been shipped to

distributors and were already in the field. After conducting some

inspections, CMI determined that not every part was affected.

Rather, some parts had a small amount of sand and some parts had

no sand at all.

2 In response to CMI's notification, the FAA concluded that the investigation "indicated the deficiency was not deliberate or intentional . . . nor was there a lack of competency." Moreover, CMI's remedial actions "demonstrated a constructive attitude" towards compliance.

4 A-0870-16T4 Because CMI did not sell directly to consumers, in order to

inspect the potentially affected cylinders in the field, CMI

conducted an investigation, which involved a lengthy process of

identifying, locating, and contacting the purchasers. The first

step in the process was to locate the serial numbers of the

affected cylinders and cross-reference those numbers with the

sales orders to determine which distributors received the

cylinders. Then, CMI had to contact the distributors to ascertain

the identity of the ultimate purchaser. Once CMI obtained that

information, CMI could then contact the purchasers directly.

In conducting the investigation, CMI's customer service team

developed and maintained a spreadsheet used to track the serial

numbers of the affected cylinders, the distributors, and, once

identified, the ultimate purchasers. The spreadsheet listed any

contact CMI had with these individuals or entities. According to

the notations on the spreadsheet, CMI emailed Mattituck to

determine who purchased the two cylinders Mattituck had placed in

plaintiff's airplane engine. Mattituck identified Tim Kearns of

Albatross Air as the purchaser. The spreadsheet also indicated

that on November 5, 2012, CMI contacted Kearns who identified

CP#1109's owner, Martin O'Boyle,3 as the owner of the airplane.

3 Originally, O'Boyle was a named plaintiff in the complaint. However, the trial judge dismissed O'Boyle from the case on the

5 A-0870-16T4 Additionally, the spreadsheet noted that CMI contacted Chip Bonner

from Southeast Aero Services, Inc. (Southeast), who stated that

O'Boyle's airplane was located at his facility in St. Augustine,

Florida.

Despite CMI's efforts to identify and notify purchasers,

plaintiff claimed it was never notified by CMI and first became

aware of the problem on or around January 16, 2013, when Bonner

conducted an annual inspection of the aircraft and reported that

the engine's water pump was running hot, causing the engine to

overheat and rendering the aircraft unsafe to fly. Additionally,

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CP 1109, LLC VS. CONTINENTAL MOTORS, INC. (L-4837-13, CAMDEN COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/cp-1109-llc-vs-continental-motors-inc-l-4837-13-camden-county-and-njsuperctappdiv-2018.